Market Development
The statement that copper has reached new record prices and surpassed the $5 mark is not current, as the price of copper on June 6, 2025, was about $4.81 per pound. Nevertheless, copper is a highly sought-after raw material, especially due to the energy transition and rising demand in the industry.
- Price Development: Historically, the copper price has experienced significant fluctuations. In recent years, there have been both increases and decreases, influenced by global economic factors and trade policy.
- Current Trends: The copper price has remained volatile in recent months. Despite a slight increase last month of 4.73%, there was a recent decrease of 1.92% due to uncertainties in global trade policy.
- Forecasts: The International Copper Study Group has doubled its surplus forecast for 2025, indicating rising production and declining demand. This could increase price pressure.
Raw Material Demand
- Energy Transition and E-Mobility: Copper is crucial for the energy transition, as it is used in electric motors, solar panels, wind farms, and electric cars. An electric car requires up to four times as much copper as a vehicle with an internal combustion engine.
- Power Grids and Industry 4.0: The expansion of power grids and the establishment of charging infrastructure, as well as new technologies in Industry 4.0, continue to drive demand for copper.
- Long-term Forecasts: International studies predict that global copper demand could almost double by 2035, reflecting the increasing importance of copper in modern technologies.
Investment Opportunities
- Copper Stocks: Companies like BHP, Glencore, Freeport, and First Quantum offer investors opportunities for price gains, though with increased risk involved.
- Commodity Trading: Trading in copper futures can be a way to benefit from price fluctuations but requires a good understanding of market dynamics.
In summary, copper is a central raw material for modern industry and the energy transition, which further increases its demand. Despite current price volatility, copper remains an important factor in the global economy.